Bitcoin Forum

Simple question:

If a project is announced to have an upcoming listing on Cryptopia or similar exchange, is it a common indication that the price will rise after the listing is up? Or could the new access to markets lead to an easier sell-off? (This question is ignoring the fact that some scam-coins lie about upcoming listings for market manipulation reasons).

Another question for those of you who want to hazard a guess: which exchanges make the biggest difference to the value of a coin when added? Why?

Just a question out of curiosity.

Being listed on an exchange is a sign of recognition and because some exchanges have expensive listing fees, it's also a sign of dedication by the developer.

https://www.cryptopia.co.nz/Paytopia

Listing costs 5 million DOT. At the current rate that is over 5 Bitcoin.

That's a good point! Thanks for that.

One more argument was suggested elsewhere. I'll reiterate what he said: "When a coin is added to an exchange with greater liquidity, the miners who have been mining the coin since it's beginning will dump their coins, driving the price down."

Do you think this has any merit? I hadn't given it any thought before it was said to me.

Good question.

The statement ""When a coin is added to an exchange with greater liquidity, the miners who have been mining the coin since it's beginning will dump their coins, driving the price down" is applicable to NEW coins that are newly being listed in exchanges. Naturally, miners will need to pay for their expenses and cash out so dumping usually occurs especially if the new coin is listed on it's first exchange.

However, if the coin has been in circulation for some time (majority of the dumpers have already gone), an additional exchange listing the coin usually results in upward price movement. So YES, historically, EXISTING coins that were already being traded, rose in value once added to other exchanges. Take a look at MONERO for example. It reached $120 when it was listed in new exchanges.

but we saw a lot of coins dump after listing in exchanges

If you can sell that coin in a exchange, so there should be buyers, if not, exchange itself does not mean anything if there are no buyers. Besides large exchanges provide big volumes, but only good coins can be listed there so when they listed there, their value increase instead of decline as they are good coins.

The announcement that a coin will be added to an exchange and the following anticipation can also cause a run-up of the price up to the point where it is actually being listed. Especially when there's little else to look forward to in terms of development and adoption. Then, the price actions follows the market adage "Buy the rumor, sell the news".

Much also depends on the current state of the crypto market. For example, at the moment adding coin to the exchange is almost equivalent to suicide for most coins because of Bitcoin rally and forthcoming possible hardfork. Even those coins which have growth potential will have a stable volume and price but not more.

The biggest exchanges are more exclusive, therefore a coin being listed on one those exchanges could be considered an endorsement by an authority in the field. These days, for a small coin to be accepted by Bittrex is a great honor. It hasn't always been that way though, there are currently many worthless coins on Bittrex that are remnants from the past.

Depends on the coin, man, Neo went up 56000%, right? Others dump on the first week and stay down forever. Just do your own research, look at youtube analysis and market sentiment about the coin. This will tell you what the price would most likely to be later on.